A trade deal, even a limited one, could soothe global markets shaken by a 2025 tariff war that led to triple-digit levies between the world’s two biggest economies. Bessent told Fox News' "Special Report" that the deal would extend the truce through January 10. It had been set to expire on November 10.
Deep differences remain. The two countries are at odds on issues including export controls on rare-earth minerals and computer chips, China’s ties with Iran and US support for Taiwan.
The meeting comes at a difficult moment for Trump, who faces falling approval numbers as public discontent with his war on Iran grows. Xi, while also facing challenges at home, arrives in a seemingly stronger position, with his country's trade engine roaring. Some Republicans regard Beijing as an existential threat and are wary of Trump's friendly outreach to China's ruling Communist Party.
People familiar with the plans said Xi was likely to forcefully raise Beijing's claim to Taiwan, a topic Washington would prefer to avoid, while Trump was likely to maintain firm US export controls despite Xi’s objections. It was unclear whether Beijing will help Trump break a stalemate in the conflict with Iran.
But talks set for Thursday could nonetheless yield deals to lower tariffs in specific sectors, cooperate on drug trafficking and expand military-to-military dialogue. Trump is expected to seek the release of some Americans and others detained in China, according to the people.
The two countries could also agree to talk more on AI, where they are in fierce competition despite growing dangers.
The leaders themselves may not feel they need to compromise, analysts said.
"The president very much believes that over time the US economy is going to grow, the US will get stronger," said Edgard Kagan, a former White House official now with Washington's Center for Strategic and International Studies. "I think when Xi Jinping sits down with Donald Trump, he very much believes the US is in hurtling decline, and that time is on China's side."
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